Saudi Sovereign Wealth Fund Shows “No Interest” In Tesla LBO

By Tyler Durden

In the aftermath of Elon Musk’s shocking announcement that he was contemplating a $72 billion LBO for Tesla with “funding” allegedly “secured” from investors, investors promptly concluded that there is only a handful of names that could bankroll such as massive transaction. The first name cited was that of Japan’s SoftBank, which thanks to its $100bn Vision Fund, has been linked to most tech deals.

However that speculation was promptly put to bed last week when the FT reported that even when the stock was trading around $300/share, “people close to SoftBank tell the FT that the fund considers Tesla to be overvalued and there are no indications it wants to invest.”

Meanwhile, Bloomberg reported that Soft Bank head Masayoshi Son and Musk had met in April 2017 to discuss an investment in Tesla, and while the talks touched on taking Tesla private, they “failed to progress due to disagreements over ownership. Musk proposed a structure that would have given him disproportionate control over the company through stock with super-voting rights”, a similar outcome to the structure he has proposed publicly, even if it still remains unclear just what Musk hopes to achieve beside cutting the “liquidity”, i.e., buying and …read more

Source:: Zero Hedge

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